As of reports published August 18th, 2020, e-commerce sales of Walmart in the United States skyrocketed by 97%. The rise of Walmart’s stock as much as 9.3% in Q2 as consumers spent on general merchandise and food products.
These earnings said as Walmart’s biggest earnings in the last 31 years. Another factor that contributed to the increase is online shopping and people spent their stimulus checks which recorded almost double the sales.
Addressing needs during pandemic
It has massively invested in e-commerce marketing assuring a steady supply chain with goods and food during the Covid-19 pandemic. The company is also planning to introduce a membership service that will help consumers with faster delivery and connecting better with its clients.
This membership service, named as Walmart+ is expected to be a parallel service competitor of Amazon Prime. The share values had reached a “52-week” high recording a figure $137.63.
Walmart’s Stock: Fast Facts
- According to Refinitiv, the concerned difference of revenue is $137.74 billion versus $135.48 billion
- According to Refinitiv, earnings/share was $1.56 adjusted versus $1.25
- As per StreetAccount, survey same-store sales in US increased with a rate of 9.3% versus gain of 5.4%
Walmart’s stock as reported in the second quarter, net income increased from $3.61 billion or $1.26 per share to $6.48 billion or $2.27 per share. Reports suggest that bulk shopping rate increased which caused the average ticket to rise by 27% during Quarter 2.
Walmart declared that to meet costs related to Covid, it spent around $1.5 billion. The retailer recruited as many as 400,000 workers from hourly basis to full-time employees.
Also, it must be noted that net sales of Walmart dropped to $27.2 billion (by 6.8%) since government mandate prohibited shopping from in Central America, Africa, and India.
Falling stocks anticipated
One of the main reasons that can offset huge earnings of Walmart’s Q2, which recorded at an all time “52-week” high can be due to margin pressures.
The stock price of the world’s biggest “brick-and-mortar” retail company dropped to $124.17.
Experts suggest that margin pressures might cause stock price fall. Similar instances were reported from other retailers like Target and Costco during the ongoing Covid-19 pandemic.